business-and-finance

How to apply for your first job

Sun, 01 Nov 2009 17:51:53 +0100

Written applications

Written applications generally form a key part of an employer’s selection process. Employers use selection processes to select who they should interview for a job by assessing skills, qualities, experience and qualifications. Some employers will also use selection processes to identify written communication skills if these are important to the job.

Before you begin your written application:

ensure you have researched the employer and the position you are applying for
identify which of your skills, attributes, knowledge, experience and qualifications are going to appeal to the employer the most.

Cover letter

Many employers are very busy, so the cover letter needs to be concise.

What to include

Customise every cover letter so it’s relevant to the employer and a particular job.
Focus on what the employer wants to know, not what you want from them. Try to convince them that you can do the job, that you’ll do a great job and that you’ll fit in and be an asset to their organisation.
Make sure you include your contact details.
Keep your letter to no more than one page—you don't want to overwhelm the employer with too much information.

Structure

In the opening paragraph, explain the purpose of your letter. Mention the position you are applying for and where you heard about it or where it was advertised.

In the next paragraph, show you can do the job and do it really well—you should focus on covering concisely your qualifications, skills, abilities and experience. Highlight what makes you perfect for the job advertised.

Next, highlight how keen you are to work for the company and why. Try to give some information about what type of person you are. Keep in mind what you know about the employer and mention the personal qualities you have that you think they are looking for.

Before finishing, thank them for taking the time to review your application. Also mention any attachments including your resume and any work examples.

Final check

Before sending your application check it over or have someone else read through it to ensure there are no mistakes and ensure that you have read the job advertisement and any other information thoroughly. For example, some employers may ask you to send several copies of your application. Others might want you to address specific selection criteria. If you miss things like this, the employer might think you lack attention to detail.

You should also complete the following check:

Don’t send too much—employers are very busy and will not want to be bombarded with information they haven’t asked for.
Send only copies of your documents. If the employer has requested copies of certificates and other formal documents, send copies only. You can show them the originals if required at your interview.
Ensure your application is professionally presented as employers pride themselves on their professionalism and are looking at your application to ensure that you share their values. For example:

type your application, unless they specify for you to write it
use clean A4 paper
don’t make manual corrections, such as crossing something out or using correction fluid
make sure it is easy to read—the print is clear, there are spaces between paragraphs, a suitable font size and appropriate margins (the print doesn’t start too close to the top of the page or go too close to the edges or bottom of the page)
Use an A4 envelope so that you don't have to fold your application
use a standard font, nothing too fancy
tailor your application to the job you are applying for. If you are applying for a creative industry, it might be appropriate to show your creativity. For most jobs, however, concentrate on making the application clear, simple and to the point.
number the pages in the application and include your name in the header or footer of each page just in case they become separated.
If posting your application make sure you send it in plenty of time, otherwise try and drop it off in person.

Top 10 UK stock Brokers

Fri, 23 Oct 2009 06:23:20 +0100

See list of top stock brokers on London Stock Exchange

-Selftrade Dealing Account

-Barclays Stockbrokers Trading Account

-TD Waterhouse Trading Account

-E*Trade UK Equities Account

-IWeb Trading Account

-Halifax Share Dealing

-Investdirect (HSBC stock broker)

-Interactive brokers (also known as III brokers)

-Lloyds Stock Brokers

-RBS Stock Brokers

Is it too late to invest in Banking stocks?

Thu, 22 Oct 2009 19:38:13 +0100

Is the worst over for banking shares? Given that some investors missed the April to date bull run, are there still signs of green shoots in the banking. Before the recession, RBS shares were 600p, Barclays shares were over 750p, Lloyd’s shares over 400p; Bank of America was over $60. All these shares are now trading at less than a quarter of their pick price before the recession even after a 3/4 year bull run. Is there any chance that these shares could rise further or the correction process will take the prices back to their 2008 levels.

Here are some factors to consider when buying or selling banking shares:

Pros

1.Given government support to banking sector it is very unlikely that any bank will go under during this “last” part of the recession. Given the stimulus packages, every tax payer now owns some part of a bank at least one and the government will not let the taxpayer loose the money.

2.If the green shoots are out there, then there is room to tap into the next bull run whether its next month or next year. US Federal Reserve chairman Ben Bernanke: "We're working on it. And I do think that we will get it stabilized, and we'll see the recession coming to an end probably this year. We'll see recovery beginning next year (2010). And it will pick up steam over time."

3.Excess liquidity in the market due to excessive stimulus packs will probably means too much money chasing few banks. This will probably mean banks have a greater chance of producing results exceeding market expectations in the next few years.

4.Banks have consolidated, are more efficient than they were before the recession and there seem to be less competition. No more huge unjustified bonuses- everyone seems to be watching.

5.There have also been rumors that some governments might sell some of itheir stakes in the banks increasing confidence in the sector.

6.Some banks have started repaying their government's loans and further increasing confidence in the sector.

Cons

1.The recession may continue for a couple of years and one can get burnt out for a long period. Warren Buffett: "The economy will be in shambles throughout 2009 and, for that matter, probably well beyond but that conclusion does not tell us whether the stock market will rise or fall"

2.For a short term investor the market, it might be too late to get into the banking stocks. Short term investors have already made stunning gains the past few months. Bank of Ireland short term investors made 1,783% profit when the shares rose from 15p to 226p in a space of less than 3 months. Barclays rose from 51p in January to 280p in May.

3.Recently some top brokers have issues “a short-term sell” orders on bank stocks. Graham Spooner says “However, with the bank warning it may be some time before it can stand alone financially, we are advising shareholders to sell.”

Conclusion

The long term view appears positive. However for short term investors it can be a hell of a risk to buy banking shares now but it might be worthy buying small shares in stages increasing your holdings on days when your preferred holdings fall in price.

Work at Home Job Ideas

Thu, 22 Oct 2009 19:13:02 +0100

Interested in working at home? Here are some ideas of genuine work from home jobs.

Home Based Agent

A home based agent is someone who works from their home office gathering, entering and confirming customer information, answering customer questions, resolving issues, providing customer care, engaging in live chat, responding to email, and handling sales calls with customers.

Virtual Assistant

A Virtual Assistant (VA) is, in most cases, an entrepreneur who works from their home office. Virtual Assistants provide administrative, secretarial, and clerical support, as well as creative and/or technical services for a client.

Online Tutor

Online tutors work for internet based companies that offer help, within a variety of subject areas, to students of all ages.

Home Based Agent

Work at Home Transcription Jobs

Work at home transcriptionists are usually independent contractors who transcribe and edit recorded reports onto their home computer.

Freelance Writing Jobs - Telecommute

The following list of 20 freelance writing jobs websites are places that advertise jobs specifically for writers who work remotely or telecommute.

Paid Surveys

Paid surveys are online surveys, where you receive a payment for responding to survey questions.

American Express

American Express Travel Counselors work on-site at clients’ businesses or work at home.

Selling your crafts

If you specialize in jewelry, pottery, clothing, illustrations, bath products, edibles and more, you should be selling on such markets like Ebay, Amazon etc

Other Freelancers.

Businesses are increasingly hiring home-based freelancers to perform tasks ranging from software development to writing press materials. A couple of sites deal with this include Get-a-Freelancer.com , freelancer.com; Elance and oDesk and they serve as middlemen between job seekers and businesses eager to contract with them.

Why outsource to China

Thu, 22 Oct 2009 18:56:40 +0100

Companies of all sizes have turned to outsourcing in China, which can free up internal resources, keep overhead under control, minimize liability and ultimately save money. China outsourcing services encompass a variety of industries, including telecommunications, computers, electronics, software and consumer goods. With the right offshore outsourcing service, accomplishing these goals is only the beginning of the benefits of Chinese outsourcing. In addition to sizeable cost savings, outsourcing to China presents additional value by improving process productivity and product quality.

Chinese economic reform has brought a tide of manufacturers to China from neighboring technology hubs like Korea, Taiwan, Hong Kong, and Malaysia. The ripple effect was that US manufacturers followed suit. In response to the demand for skilled labor, Chinese colleges are turning out waves of highly skilled programmers, moving China to the center of the international IT outsourcing boom, in addition to its position as the world’s manufacturing leader.

Here are some of the most compelling reasons for outsourcing to China:

1. High literacy level and education level including (knowledge on latest technology and manufacturing processes)

Over 90.9% (male: 95.1%; female: 86.5%) of the population over age 15 are literate. China's youth (age 15 to 24) literacy rate was 98.9% (99.2% for males and 98.5% for females) in 2000.In March 2007, China announced the decision of making education a national "strategic priority", the central budget of the national scholarships will be tripled in two years and 223.5 billion Yuan (28.65 billion US dollars) of extra funding will be allocated from the central government in the next 5 years to improve the compulsory education in rural areas.

Many parents are highly committed to their children's education, often investing large portions of the family's income on education. Private lessons and recreational activities, such as in foreign languages or music, are popular among the middle-class families who can afford them

China has the world's second largest research and development budget, and is expected to invest over $136 billion in 2006 after growing more than 20% in 2005 the past year.The Chinese government continues to place heavy emphasis on research and development by creating greater public awareness of innovation, and reforming financial and tax systems to promote growth in cutting-edge industries.

2. Cheap Labor

Some companies have achieved costt savings of 30-60%. Hence outsourcing to China enables companies to the opportunity to reduce manufacturing costs by up to 70% with very few risks. Why is it cheaper to outsource product manufacturing or outsource technology services such as Web site design and development to China? In a nutshell: low-cost labor and high quality products and services. According to a survey conducted by InformationWeek China, the monthly salary for programmers in high-tech hotbeds such as Beijing and Shanghai is between $600-950 a month, which is approximately half of what technology professionals make in India and less than a quarter of going rates in the US. In secondary locations like Dalian, a coastal city in northern China, salaries average only $450 a month.

China has long been a leader in manufacturing services; in fact, manufacturing accounts for a large percentage of its outsourcing revenue. It is well known that manufacturing goods in China presents significant cost savings over US production—as much as 30-60 percent. Instead of remaining content with dominating factory product outsourcing, China has risen to the occasion by making a strong entry into IT outsourcing.

There are more and more technology professionals entering the marketplace thanks to U.S. tech firms like Cisco Systems, IBM, Microsoft and Sun Microsystems, and the Chinese government, which has established 35 national schools that provide software training, especially in technologies such as .Net, Linux, Java, and Web development services.

3. Language

English has attained the level of China's second language.

Government has made the National English proficiency test mandatory for B.A and M.A.

4. Faster time to market

China is the manufacturing plant of the world providing sound base for outsourcing strengthened by risk mitigation and greater stability.

Also, China sits next to Japan, world's second largest economy, and shares cultural and historical background with it. Therefore an increasing familiarity and economic integration is visible between the two countries.

Thus one can conclude the growing economic fabric of China will create a vibrant outsourcing environment making it your next IT source location.

5. China, A Great Place to do Business

To attract foreign partnerships, the Chinese government passed laws protecting ownership and intellectual property in the country. To encourage commerce in the outsourcing sector, China has embraced public and private partnerships and domestic and foreign partnerships alike.

While India has dominated IT outsourcing historically, with China at the forefront of manufacturing, the tide has turned, placing China at the head of the class in both categories. Concerns over the trend reversing are unfounded. Investors in the Chinese outsourcing market won’t face the kind of wage inflation experienced in India as demand catches up with supply. In China, several hundred thousand students graduate every year with technology degrees; the rate in India is not even close.

Implications of a current account deficit and a current account surplus

Thu, 22 Oct 2009 11:55:44 +0100

In economics, the current account is one of the two primary components of the balance of payments, the other being the capital account. It is the sum of the balance of trade (exports minus imports of goods and services), net factor income (such as interest and dividends) and net transfer payments (such as foreign aid).

What Does a Current Account Tell Us?
Theoretically, the balance should be zero, but in the real world this is improbable, so if the current account has a deficit or a surplus, this tells us something about the state of the economy in question, both on its own and in comparison to other world markets.

A surplus is indicative of an economy that is a net creditor to the rest of the world. It shows how much a country is saving as opposed to investing. What this means is that the country is providing an abundance of resources to other economies, and is owed money in return. By providing these resources abroad, a country with a CAB surplus gives other economies the chance to increase their productivity while running a deficit. This is referred to as financing a deficit.

A deficit reflects an economy that is a net debtor to the rest of the world. It is investing more than it is saving and is using resources from other economies to meet its domestic consumption and investment requirements. For example, let us say an economy decides that it needs to invest for the future (to receive investment income in the long run), so instead of saving, it sends the money abroad into an investment project. This would be marked as a debit in the financial account of the balance of payments at that period of time, but when future returns are made, they would be entered as investment income (a credit) in the current account under the income section.

A current account deficit is usually accompanied by depletion in foreign-exchange assets because those reserves would be used for investment abroad. The deficit could also signify increased foreign investment in the local market, in which case the local economy is liable to pay the foreign economy investment income in the future.

It is important to understand from where a deficit or a surplus is stemming because sometimes looking at the current account as a whole could be misleading.

Analyzing a current account deficit and current account surplus
Exports imply demand for a local product while imports point to a need for supplies to meet local production requirements. As export is a credit to a local economy while an import is a debit, an import means that the local economy is liable to pay a foreign economy. Therefore a deficit between exports and imports (goods and services combined) - otherwise known as a balance of trade deficit (more imports than exports) - could mean that the country is importing more in order to increase its productivity and eventually churn out more exports. This in turn could ultimately finance and alleviate the deficit.

A deficit could also stem from a rise in investments from abroad and increased obligations by the local economy to pay investment income (a debit under income in the current account). Investments from abroad usually have a positive effect on the local economy because, if used wisely, they provide for increased market value and production for that economy in the future. This can allow the local economy eventually to increase exports and, again, reverse its deficit.

So, a deficit is not necessarily a bad thing for an economy, especially for an economy in the developing stages or under reform: an economy sometimes has to spend money to make money. To run a deficit intentionally, however, an economy must be prepared to finance this deficit through a combination of means that will help reduce external liabilities and increase credits from abroad. For example, a current account deficit that is financed by short-term portfolio investment or borrowing is likely more risky. This is because a sudden failure in an emerging capital market or an unexpected suspension of foreign government assistance, perhaps due to political tensions, will result in an immediate cessation of credit in the current account.

Conclusion on current account deficit and current account surplus
The volume of a country's current account is a good sign of economic activity. By scrutinizing the four components of it, we can get a clear picture of the extent of activity of a country's industries, capital market, services and the money entering the country from other governments or through remittances. However, depending on the nation's stage of economic growth, its goals, and of course the implementation of its economic program, the state of the current account is relative to the characteristics of the country in question. But when analyzing a current account deficit or surplus, it is vital to know what is fuelling the extra credit or debit and what is being done to counter the effects (a surplus financed by a donation may not be the most prudent way to run an economy). On a separate note, the current account also highlights what is traded with other countries, and it is a good reflection of each nation's comparative advantage in the global economy.

How to establish a credit rating for an immigrant

Thu, 22 Oct 2009 00:52:58 +0100

Credit History of Immigrants

Credit history usually applies to only one country. Even within the same credit card network, information is not shared between different countries. For example, if a person has been living in Canada for many years and then moves to the United States, when they apply for credit cards or a mortgage in the U.S., they would usually not be approved because of a lack of credit history, even if they had an excellent credit rating in their home country and even if they had a very high salary in their home country.

An immigrant must establish a credit history from scratch in the new country. Therefore, it is usually very difficult for immigrants to obtain credit cards and mortgages until after they have worked in the new country with a stable income for several years.

How to establish credit records

If you're a young person just starting out in life and have never financed a car loan, a computer, or other major purchase, how do you begin to establish credit?

First, consider applying for a credit card issued by a retailer, such as Sears.

You must be at least 18 years old to be approved for a credit card. Why? Because under contract law, a minor can rescind a contract at will in most circumstances. If a credit card issuer were to give a credit card to a minor, the minor could charge up to the credit limit and then rescind the contract and refuse repayment. Minors wanting to have a credit card in their own name must have a parent, guardian or other adult over the age of 18 contracts for the credit card.

You Must Have An Income. This does not really need an explanation. Would you lend money to someone who had no means of repaying it? Your credit line will be very small if you have a small income, but you must start somewhere. If you make your payments on time, your credit line will be increased after periodic reviews.

You must have a telephone number in your name. If you don't have a telephone number at all, you will not get unsecured credit. Likewise, if you can be contacted only from a telephone number that belongs to your Uncle Joe's second cousin, this will make lenders very nervous and they will be much more likely to decline to give you credit.

You Should Have Checking and Savings Accounts. There is a reason that you are often asked if you have a checking or savings account when applying for credit. This is used to score your credit worthiness. Answering "yes" boosts your odds of getting credit; answering "no" does the opposite. Just don't answer falsely; it is an act of fraud to give false information when applying for credit. You can open a checking account for as little as $100 in many places and increase your credit score a little bit.

Stay in one place. If you move from apartment to apartment or city to city, this will send up red flags all over the place. Lenders are concerned about you disappearing and not being able to locate you. Living at the same address for a long time adds points to your credit score. The longer you stay at one address, the better.

Stay at the same job. Moving from job-to-job is frowned on by lenders, too, because it shows instability and makes them less likely to approve your application, particularly when you have no credit history. If you can't keep a job and you have no credit history, you're at a much higher risk of being unemployed and, consequently, unable to pay your debts. Working for the same employer for a long time adds points to your score.

Pay Your Bills on Time. Once you have been issued credit, it is very important that you are not late making payments or even worse, miss making a monthly payment entirely. Missing a single payment will damage your credit rating for years, and being late several times will come back to haunt you.

How do i get a credit report

Thu, 22 Oct 2009 00:45:20 +0100

Acquiring and understanding credit reports and scores

There are many businesses that aim to make money by providing services to consumers to check their credit reports and confirm the information in them. These companies advertise heavily. However, U.S. Law requires that the three major credit reporting agencies (Experian, Equifax, and TransUnion) provide a copy of the credit reports for any consumer that requests it, once per year. The website to order this legally-required and free service is https://www.annualcreditreport.com. Note that even carrying out the steps to acquire these reports, users will see promotions for extra credit-checking services that cost money.

Carefully following the process and declining for-pay services will allow users to get their free, legally-mandated reports. Also note that the free reports will not tell you an actual credit rating number, which is not their goal. Rather, they provide a list of accounts so users can confirm that no erroneous information is on the reports.

The Government of Canada offers a free publication called Understanding Your Credit Report and Credit Score. This publication provides sample credit report and credit score documents with explanations of the notations and codes that are used. It also contains general information on how to build or improve credit history, and how to check for signs that identity theft has occurred. The publication is available online at http://www.fcac.gc.ca, the site of the Financial Consumer Agency of Canada. Paper copies can also be ordered at no charge for residents of Canada.

How to establish credit records

If you're a young person just starting out in life and have never financed a car loan, a computer, or other major purchase, how do you begin to establish credit?

First, consider applying for a credit card issued by a retailer, such as Sears. Retail and gas cards are much easier to get than a Visa or MasterCard.

You must be at least 18 years old to be approved for a credit card. Why? Because under contract law, a minor can rescind a contract at will in most circumstances. If a credit card issuer were to give a credit card to a minor, the minor could charge up to the credit limit and then rescind the contract and refuse repayment. Minors wanting to have a credit card in their own name must have a parent, guardian or other adult over the age of 18 contracts for the credit card.

You Must Have An Income. This does not really need an explanation. Would you lend money to someone who had no means of repaying it? Your credit line will be very small if you have a small income, but you must start somewhere. If you make your payments on time, your credit line will be increased after periodic reviews.

You Should Have Checking and Savings Accounts. There is a reason that you are often asked if you have a checking or savings account when applying for credit. This is used to score your credit worthiness. Answering "yes" boosts your odds of getting credit; answering "no" does the opposite. Just don't answer falsely; it is an act of fraud to give false information when applying for credit. You can open a checking account for as little as $100 in many places and increase your credit score a little bit.

Stay at the same job. Moving from job-to-job is frowned on by lenders, too, because it shows instability and makes them less likely to approve your application, particularly when you have no credit history. If you can't keep a job and you have no credit history, you're at a much higher risk of being unemployed and, consequently, unable to pay your debts. Working for the same employer for a long time adds points to your score.

Pay Your Bills on Time. Once you have been issued credit, it is very important that you are not late making payments or even worse, miss making a monthly payment entirely. Missing a single payment will damage your credit rating for years, and being late several times will come back to haunt you.

Is Yahoo a good investment?

Thu, 22 Oct 2009 00:46:03 +0100

How does Yahoo make money?

Yahoo! Inc. (Yahoo!), together with its consolidated subsidiaries, is a global Internet brand. Together with its owned and operated online properties and services (Yahoo! Properties or Owned and Operated sites), the Company also provides its advertising offerings and access to Internet users beyond Yahoo! through its distribution network of third-party entities (Affiliates), who have integrated its advertising offerings into their Websites, referred to as Affiliate sites, or their other offerings. The Company generates revenues by providing marketing services to advertisers across a majority of Yahoo! Properties and Affiliate sites. The Company provides services in more than 30 languages and in more than 30 countries, regions, and territories, including localized versions of Yahoo!. Its offerings to users on Yahoo! Properties fall into six categories: Front Doors, Communities, Search, Communications, Audience, and Connected Life.

Financial Data

Year

2005

2006

2007

2008

Sales

5 258

6 426

6 969

7209

EBITDA

1 505

1 066

Net Results

1 896

751

660

424.3

Staff

9 800

11 400

13500

Yahoo Directors

Jerry Yang Chief Yahoo, Director
David Filo Chief Yahoo
Aristotle N. Balogh Executive Vice President - Products, Chief Technology Officer
Michael J. Callahan Executive Vice President, General Counsel, Secretary
Hilary A. Schneider Executive Vice President, North America
Penny Baldwin Senior Vice President - Global Integrated Marketing and Brand Management
Jeff Russakow Senior Vice President - Customer Advocacy

Yahoo Competitors

Google Inc.
MSFT Microsoft Corporation
EBAY eBay Inc.
TWX Time Warner Inc.
T AT&T Inc.
BIDU Baidu, Inc.
SOHU Sohu.com Inc.
NWSA News Corporation
HPQ Hewlett-Packard Company
AAPL Apple Inc.

Yahoo Significant investments

-Yahoo! holds a 40% stake in Alibaba, which manages a web portal in China using the Yahoo! brand name. Yahoo! in the USA does not have direct control over the operations of Alibaba, which operates as a completely independent company.

Yahoo website

www.yahoo.com/

How to get started with Gold Trading

Wed, 21 Oct 2009 23:38:56 +0100

Key Basics of Gold Trading

In the past commodity trading was only available to trader with large accounts, high risk tolerance and a good understanding of how the futures market works. During the past 7 years with commodities making incredible moves and gaining attention from the media, several exchange traded funds (ETF’s) have been created allowing everyone to take advantage of the commodity market.

Gold was the first commodity back in 2002 which really made traders and investors want into the commodity market. Silver was followed shortly after in popularity, then crude oil and natural gas. While most commodities were on fire these are the ones that the media took a hold of and make them well known to everyone as prices soared month after month.

Commodities should have a place in everyone’s portfolio in my opinion. And a simple way of doing that is through the use of ETFs. The wild fluctuations in investor sentiment are not likely to end any time soon and therefore, traders are looking for ways to reduce their exposure to the risky market. One of the ways to do this is to diversify outside stocks and into the other capital markets. Fortunately, the market has plenty of alternative ways to invest across other asset classes or capital markets within your existing stock and options accounts.

Gold is an interesting asset class for diversification because it is not correlated with stocks, which means it will move independently of the major indexes over the long term. Gold is also considered a good hedge against a weak USD. If the U.S. financial sectors are being disrupted (which they are) traders are going to worry about the greenback and its relative value versus other currencies will drop. As that uncertainty increases you can buy calls on GLD or the ETFs shares themselves to profit from those movements.

The bottom line is that the more irrational the market becomes the more a savvy investor should be looking for ways to mitigate risk, find new opportunities and improve diversification. Gold and the GLD ETF is one of several asset classes that can be used in times of uncertainty to accomplish those objectives.

Of all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a hedge or safe haven against any economic, political, social, or currency-based crises. These crises include investment market declines, inflation, war, and social unrest. Investors also buy gold during times of a bull market in an attempt to gain financially.

Factors influencing the gold price

· the price of gold is ultimately driven by supply and demand

· mainly affected by changes in sentiment, rather than changes in annual production.

· Central banks and the International Monetary Fund play an important role in the gold price

· Inflation estimates.

· real interest rates

· War, invasion, looting, crisis-In times of national crisis, people fear that their assets may be seized and that the currency may become worthless. They see gold as a solid asset which will always buy food or transportation

· illegal collusion to control the price and supply of gold and related financial securities.

Reasons investors buy gold

· to financially gain from increasing gold prices,

· as a hedge or safe haven against any economic, political, social or currency-based crises.

Methods of investing in gold

· Directly though investment in gold can be done directly through bullion or coin ownership

· or indirectly through gold exchange-traded funds, certificates, accounts, spread betting, derivatives or shares.

Investment strategies

Fundamental analysis

·Investors using fundamental analysis analyze the macroeconomic situation- international economic indicators, such as GDP growth rates, inflation, interest rates, productivity and energy prices, yearly global gold supply versus demand.

Technical analysis

·involves analyzing chart patterns, moving averages, market trends and/or the economic cycle in order to speculate on the future price.

Bulls versus bears

·Since April 2001 the gold price has more than tripled in value against the US dollar, prompting speculation that the long secular bear market (or the Great Commodities Depression) has ended and a bull market has returned. A World Gold Council report released on February 18, 2009 showed physical gold demand rose sharply in the second half of 2008. Identifiable investment demand for gold, which includes ETFs (exchange-traded funds), bars, and coins, was up 64 percent in 2008 over the year before.

·In the last century, major economic crises (such as the Great Depression, World War II, the first and second oil crisis) lowered the Dow/Gold ratio, an indicator of how bad a recession is and whether the outlook is deteriorating or improving, to a value well below 4. The ratio fell on February 18, 2009 to below 8. During these difficult times, investors tried to preserve their assets by investing in precious metals, most notably gold and silver.